How can I increase my fico score from 807 to 850?
by Author on Friday, July 9th, 2010 | 4 Comments
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You already have "perfect credit". You’re doing the right thing – don’t worry about getting an 850. After almost 9 years in the mortgage biz, only about 5% of the credit reports I’ve seen have scores better than 800. And if BOTH of you are 800+, that would put you in the top 1%. So just keep doing what you’re doing, and you’ll see your score increase even more with time. Keep a good monitor, but don’t spend any money trying to increase your score – it would be a waste. As long as your score is 720 or better, you’re golden.
After a certain point there is no reason that you would need a perfect score. But the only thing to help to get to that score is time. Only a handful of people actually have a perfect score. But you will have the same rate on the home loan whether you have a 807 or 850.
Once you get above FICO 750, it really doesn’t make a difference. The only way to see what might make it better is to get your free credit report (go to annualcreditreport.com) and see what is on there. But, 804 and 807 are almost perfect, so I don’t think you will find anything negative. The only thing that might be contributing to this are (1) new accounts – like did you recently open a new cell phone or credit card? If so, that will clear up in about 2 months or (2) have you been shopping for loans lately (when you give a bank authorization to run your credit score, it gives it a short term ding – nothing serious – and will be repaired in two weeks. or (3) One of your loans is recent, and still has a realtively high balance against the original amount- say a car loan that was taken less than a year ago. The only way to fix that is to pay off some of the car loan.
However, I would only do these things if you are curious. You have a great score, in a time when interest rates are at historic lows. Go find a house you like, and pounce on the mortgage rates. you won’t see lower in your lifetime.
Congratulations.
Congratulations on your scores of 807 and 804.
Both are Excellent.
My score is 810.
The best score I have heard of is 811.
On my credit report a "negative factor" it listed was:
Lack of recent installment loan information.
The suggestion to raise my score was:
Establish a new loan as a long-term strategy to improve your score.
Why would I or anyone else want to do that just to raise the FICO score above 810 which is considered "Excellent" ?